In: Statistics and Probability
Use for questions 7-10: A random sample of 384 low income Vermonters found that 223 said that lack of reliable transportation was an important factor that prevented them from finding a higher paying job. 8. Calculate the lower limit of a 95% confidence interval for the proportion of low-income Vermonters that believe that lack of reliable transportation is an important factor that prevents them from finding a higher paying job. (Round to three decimal places.)
Solution :
Given that,
n = 384
x = 223
Point estimate = sample proportion =
= x / n = 223/384=0.581
1 -
= 1- 0.581 =0.419
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2
= Z0.025 = 1.96 ( Using z table )
Margin of error = E = Z/2 *
(((
* (1 -
)) / n)
= 1.96 (((0.581*0.419)
/ 384)
E = 0.049
A 95% confidence interval for population proportion p is ,
- E < p <
+ E
0.581-0.049 < p < 0.581+0.049
0.532< p <0.630
The 95% confidence interval for the population proportion p is : 0.532,0.630